The upside pressures on the pair got more tensed since the 28th of April 2016 where the price climbed from as low as 0.7769 to as high as 0.7807.
The bulls took control over the pair by more than 30 pips to their favour, a movement with good gains for the buyers and minor losses for the sellers.
The latest appreciation or bounce of the price from the 0.7769 zone, to the 0.7807 area which is today’s major pivot point level, is a good indication that the bulls could likely exert further momentum to boost the price upwards.
Stochastic oscillators’ formation signals that a probable bullish retracement, close to the 80 level, has greater chances to occur.
In the event where the pair escalates, the buyers could set their take profit target at 0.7882.
Alternatively, a bearish break-out below the 0.7769 zone could signal that the sellers may exert far greater pressures to force the price to lower areas such as the 0.7734.
Today’s Major Announcements
- Euro zone’s Consumer Price Index – Core (YoY) (Apr)P, and the Consumer Price Index (YoY) (Apr) P releases are expected to have a strong impact on the euro
- Britain’s Mortgage Approvals (Mar) release is expected to have a medium impact on the sterling
- Probable trend (Bullish): 0.7807
- Bullish take profit target: 0.7882
- Stop loss target: 0.7769
- Alternative trend (Bearish): 0.7769
- Bearish take profit target: 0.7734